Gold prices rise to over one-month high on softer dollar, bond yields

Gold prices climbed on Tuesday to their highest point in more than a month, supported by a weaker U.S. dollar and lower Treasury yields, as investors looked for progress in trade talks ahead of an August 1 deadline.

FUNDAMENTALS

* Spot gold was steady at $3,390.73 per ounce, as of 0112 GMT, after hitting its highest since June 17 earlier in the session. U.S. gold futures held their ground at $3,404.20.


* The U.S. dollar index was hovering near a more than one-week low against its rivals, making greenback-priced gold less expensive for other currency holders, while benchmark 10-year U.S. Treasury yields hit a more than one-week low on Monday.

* The European Union is exploring a broader set of possible counter measures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats.

* Trade negotiations have yet to yield any meaningful deals as the clock ticks down on U.S. President Donald Trump's August 1 tariff deadline.

* Also on radar, the European Central Bank is expected to hold interest rates steady at 2.0% following a string of cuts at the end of its policy meeting on July 24. The U.S. Federal Reserve monetary policy is scheduled for next week.

* Traders are pricing about a 59% chance of a rate cut by the Fed in September, according to the CME FedWatch Tool. Gold tends to perform well in a low-interest-rate environment.

* Meanwhile, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.36% to 947.06 tons on Monday from 943.62 tons on Friday.

* China brought in 63 metric tons of gold last month, the lowest amount since January, data from the General Administration of Customs showed on Sunday.

* Spot silver edged 0.1% higher to $38.93 per ounce, platinum added 0.4% to $1,444.05 and palladium eased 0.2% to $1,262.35.